How US Cos. Can Reduce Latin American Tax Obligations

Law360, New York (October 30, 2013, 12:15 AM EDT) -- Many South Florida-based companies conduct business operations throughout Latin America. Typically, these operations are conducted through wholly owned foreign subsidiaries.

With the corporate tax rates in these jurisdictions approaching the highest U.S. federal income tax rates (for example, the corporate income tax rate is 35 percent in Argentina, 34 percent in Brazil and 30 percent in Mexico), many U.S.-based multinationals simply elect to treat their Latin American subsidiaries as “pass-through” entities for U.S. federal income tax purposes.

This can be accomplished by filing a Form 8832...
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